Extra Tips on Insurance

Those in the market for life insurance need to know there are two major types of policies: Term and Permanent.
Term insurance is a form of life insurance that pays out only if the death occurs during the “term” of the policy, which is usually anywhere from one to 30 years. The premium rates for term policies are comparatively less expensive than they used to be, as Americans as a whole live longer and healthier lives.

If you are buying a short-term life insurance policy (under 10 years), look for renewal guarantees. A renewal guarantee gives you the right to start a new term after the current one ends. You will pay a higher premium based on your current age, but will not be required to undergo a new health exam nor submit any other “evidence of insurability.” Without the renewal guarantee, you would have to start from scratch when applying for a policy and, if your health has deteriorated in the interim, you might end up paying significantly higher premiums or not getting coverage at all.
Permanent life insurance encompasses several subcategories, including traditional whole life, universal life, variable life and variable universal life. Unlike term life, permanent policies remain in force as long as the premium is paid, and some policies accumulate a cash value. The premium rates for whole life policies have generally remained stable in recent years.
“Look for a policy that meets your needs,” said Barry. “There are ways to save money when buying life insurance but they don't always involve paying a lower premium immediately.”